Discover Cd Rates
- Discover Bank CDs. Discover Bank offers certificates of deposit with terms ranging from three months to as long as 10 years. That’s important because many banks don’t exceed five years on their CDs. As you’ll see below, the interest rate return becomes progressively higher the longer the CD term runs.
- Certificates of Deposit - Branch Banks 2021. A certificate of deposit (CD) is a savings product offered by a bank in which a depositor (someone who has money to put into the bank) agrees to commit a certain amount of money for a set period of time, in return for a fixed rate of interest.
Discover Bank CD, IRA and Money Market Account and rates consistently exceed the national average. Enjoy free Online Banking. Accounts are FDIC-insured up to applicable limits.
- Competitive interest rates
- No monthly account fees
- No physical locations
- Higher minimum deposit
- Those who want to save according to some of the best rates, without the volatility of investing
Discover Bank offers 12 certificate of deposit terms ranging from three months to 10 years. While some other banks do offer more options, Discover Bank still allows you to open certificate of deposit (CD) accounts to save for short-term as well as longer-term goals like a down payment on a house.
You will have to have at least $2,500 to open a Discover CD. This may be a little high, especially when compared to other banks’ minimum deposit requirements of around $500 or even $0. However, the upside of a bigger deposit is that your money can grow more than it would with a small deposit.
Luckily, you won't have to worry about paying a monthly fee with a Discover CD account.
| Discover CD | Minimum Deposit | Rate | |
| 3 Month | $2,500 | 0.20% | Compare CD Rates |
| 6 Month | $2,500 | 0.25% | Compare CD Rates |
| 9 Month | $2,500 | 0.30% | Compare CD Rates |
| 12 Month | $2,500 | 0.50% | Compare CD Rates |
| 18 Month | $2,500 | 0.50% | Compare CD Rates |
| 24 Month | $2,500 | 0.50% | Compare CD Rates |
| 30 Month | $2,500 | 0.55% | Compare CD Rates |
| 3 Year | $2,500 | 0.55% | Compare CD Rates |
| 4 Year | $2,500 | 0.55% | Compare CD Rates |
| 5 Year | $2,500 | 0.60% | Compare CD Rates |
| 7 Year | $2,500 | 0.60% | Compare CD Rates |
| 10 Year | $2,500 | 0.60% | Compare CD Rates |
3-Month CD Interest Rate Comparison
Overview of Discover CDs
With 12 available CD terms, Discover allows you to open an account for a variety of financial goals whether long term or short term. This also makes for a perfect CD ladder structure. A CD ladder is when you open multiple CD accounts at the same time, each with a different maturity date. That way, you can have a payout every few months or so, depending on the ladder you create.
Discover Cd Rates California
You will need at least $2,500 to open a Discover CD account. Again, this is pretty high when compared to other banks’ minimums. However, it does yield larger earnings over time, especially with Discover’s strong CD interest rates.
It’s important to remember that CDs are timed deposits. You can only access the funds you’ve deposited into the account when it reaches maturity. Once it matures, you have a nine-day grace period to make any withdrawals or additional deposits you want. Before that, however, an early withdrawal can trigger a penalty.
If you’ve just opened a new CD and you make any withdrawals starting from the eighth day after opening and continuing for the next 22 days, you’ll face a penalty that costs each day’s simple interest on the amount withdrawn. For renewed CDs, the same penalty applies if you make a withdrawal from the end of the grace period through the following 20 days. Outside of these timeframes, your penalty will depend on your CD length. For terms less than a year, you’ll face a penalty of three months’ simple interest. For terms between one and four years, the penalty is six months of simple interest. Terms of four to five years charge a penalty of nine months of simple interest. Terms of five to seven years charge a penalty of 18 months’ simple interest and, finally, terms of seven years or longer charge a penalty of 24 months’ simple interest.
How Much You Earn With Discover Certificate of Deposits Over Time
You stand to earn the most with Discover’s longer-term CDs. You’ll see below that with a 3-month CD, you’ll only earn a few dollars on your deposit at the end of the term. With a longer term, however, like 12 or 60 months would see growth of hundreds of dollars. Again, this depends on your initial deposit, too.
Discover does boost your growth by compounding interest daily. This grows your money faster and more efficiently than monthly compounding, for example. Daily compounding means your deposit will earn interest today, that new amount will earn interest tomorrow and so on. The amounts below reflect your possible final earnings at the end of each account's term.
| Initial Deposit | 3-Month CD | 12-Month CD | 60-Month CD |
| $2,500 | $2,501 | $2,512.50 | $2,575.91 |
| $5,000 | $5,003 | $5,025 | $5,151.81 |
| $10,000 | $10,005 | $10,050 | $10,303.62 |
How Discover CDs Rates Compare to Other Banks
Discover offers some of the best CD rates in the industry. This is due to the bank’s lack of physical locations throughout the country which makes more room for higher-earning rates. As you can see below, Discover’s rates come very close to those of other online banks like Ally Bank and Marcus by Goldman Sachs. Plus, while Marcus’ rates are higher for longer-term accounts, Discover offers a better rate for the 6-month CD option.
Discover Cd Rates As Of Today
At $2,500, Discover requires a higher minimum deposit than the other banks do. Marcus’ minimum comes in at $500. Ally doesn’t have a minimum deposit requirement, allowing you to deposit whatever amounts you can. This means that if you can only put away $50 responsibly, Ally will let you do that. It is important to note that higher balances can get you better rates and earnings. The Ally Bank rates given below are for its High Yield CDs’ lowest tier.
| CD Account | Discover | Ally Bank | Marcus by Goldman Sachs |
| 6 Month | 0.25% | 0.25% | 0.15% |
| 1 Year | 0.50% | 0.60% | 0.55% |
| 3 Year | 0.55% | 0.65% | 0.55% |
| 5 Year | 0.60% | 0.85% | 0.60% |
Compare Discover Bank to Other Competitive Offers
Should You Get a Discover CD Account?
Discover offers some solid CD account options. Its rates outperform most big bank competitors like Chase CDs or Bank of America CDs. Plus, the rate your account will earn at is pretty straightforward since it does not depend on your account balance.
Discover is a good option if you want to keep your bank accounts all in one place, each with a high-earning interest rate. You do just have to make sure you can meet the bank’s minimum deposit requirements.
1. The Annual Percentage Yield (APY) for the Online Savings Account as of is more than five times the national average APY for interest-bearing savings accounts with balances of $500 as reported by Informa Research Services, Inc. as of . Interest rates and APYs are subject to change at any time. Although the information provided by Informa Research Services has been obtained from the various institutions, accuracy cannot be guaranteed.
2. Annual Percentage Yield (APY). Advertised Online Savings Account APY is accurate as of . Applies to personal accounts only. APY may change before or after the account is opened. No minimum deposit to open required.
3. Federal law limits the number of certain types of withdrawals and transfers from a Money Market Account to a combined total of six per calendar month per account. There is no limit on the number of withdrawals by ATM or by Official Check mailed to you. If you exceed these transaction limitations during any calendar month we may refuse to pay each transaction in excess of the limitations. If you exceed these limits on more than an occasional basis, we reserve the right to close your account.
4. Annual Percentage Yield (APY) is accurate as of for Money Market Account balances under $100,000 and subject to change daily without notice before or after the account is opened. Applies to personal accounts only. No minimum deposit to open required.
5. Annual Percentage Yield (APY) is accurate as of for Money Market Account balances of $100,000 or more and subject to change daily without notice before or after the account is opened. Applies to personal accounts only. No minimum deposit to open required.
6. Annual Percentage Yield (APY) is accurate as of , is subject to change without notice, and will be determined and fixed for the term at funding. Applies to personal accounts only. A penalty may be charged for early withdrawal. No minimum deposit to open required.
7. Annual Percentage Yield (APY) is accurate as of and is subject to change without notice. The APY will be determined and fixed for the entire IRA CD term once account is opened and correctly completed documentation and funding is received. We will send you written confirmation of the interest rate, APY and maturity date of your IRA CD after it is opened or funded. Applies to personal accounts only. A penalty may be charged for early withdrawal. No minimum deposit to open. Consult a financial advisor or tax professional for guidance.
Deposit accounts offered by Discover Bank, Member FDIC